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News - Mustafa Ari: the development of the construction sector in 2022

Expert opinion: Mustafa Ari shares the development prospects of the construction sector in 2022


Mustafa Ari, Head of the Tender Department of the LMS Group of Companies, commented on topical issues and the estimated prospects for the development of the construction industry in 2022 for the Media Sector.

What are builders hoping for in the current market environment?

Stakes are placed on optimizing the budget and the timeframe for implementating of the facility. As a general contractor for large-scale infrastructure projects, it is important for us to help the customer optimize costs from the very beginning and automate all processes at the construction site. Each customer would like to see a high-quality and reliable project implementation within the approved budget.

Carrying out turnkey work, in case of any amendments from the customer, our specialists make adjustments to the design documentation and implement it without wasting time searching and approving contractors who would be engaged in the design of the facility. This will optimize timeframe of the construction of projects.

What problems are there in the construction industry?

  • In modern realities, many builders have to deal with late payments, destabilizing prices for materials and equipment and a shortage of staff due to restrictions due to the pandemic.
  • Customers are often interested in how workers are hired for the construction of a facility. These will be employees of the general construction contractor or subcontractors. In the second case, the company must provide confirmation of the competencies and professionalism of employees.

What state programs exist in the construction sector? Аre additional support measures necessary?

Since 2019, the Moscow Government has been providing financial incentives and compensations to investors who are engaged in the construction or reconstruction of commercial buildings outside the Third Transport Ring (TTR). These are business centers and shopping and entertainment centers that create additional jobs for residents of the TTR districts. Thanks to this program, the investor can be reimbursed from 50% to 75% of the construction cost of the facility, depending on the area of ​​the Third Transport Ring. There are also other business support programs, in which it is possible to pay 90% of the funds invested in the construction of shopping and office centers.

What are the main prospects for the development of the industry in 2022?

  • The demand for the construction of residential complexes will decrease due to the increase in the interest rate on mortgages by the Central Bank. Apartment sales will decline, as will investment in development.
  • There will be an increase in investments in the development of business centers.
  • Demand for the construction of small industrial facilities in the regions of the country will increase.
  • The tendency for the construction of infrastructure facilities will continue - the construction and reconstruction of airports, as well as a new trend - the construction and reconstruction of medical centers in the regions.